2004 (10) TMI 197 - AT - Central Excise

Summary

Issues Involved: Determination of eligibility for SSI Benefit based on exclusive use of a foreign brand name 'BILZ' assigned under an Agreement.

Summary:
The appeal before the Appellate Tribunal CESTAT, Bangalore arose from a disagreement with the Commissioner (Appeals) regarding the entitlement to SSI Benefit of Notification based on the exclusive use of the foreign brand name 'BILZ'. The appellants argued that since the brand name was assigned to them exclusively for their use in India, they should be eligible for the SSI exemption, contrary to the Commissioner's view.

The learned Counsel cited the Apex Court judgment in the case of CCE, Ahmedabad v. Vikshara Trading and Investment Pvt. Ltd. and the Tribunal's judgment in the case of SPM Instrument India (P) Ltd. v. CCE, Hyderabad to support the appeal.

Upon careful consideration, the Tribunal noted that there was no dispute regarding the Agreement granting the appellants exclusive rights to use the brand name 'BILZ'. Referring to the Apex Court judgment, the Tribunal found that the appellants met the criteria for SSI exemption as per the assigned brand name, similar to the case of M/s. Vikshara Trading & Investment Pvt. Ltd.

Respecting the Apex Court ruling, the Tribunal set aside the impugned order and allowed the appeal with consequential relief. Additionally, the Tribunal considered the demands to be time-barred due to previous Tribunal judgments in favor of the appellant, which led to a bona fide belief in their entitlement to SSI exemption based on the exclusive brand name assignment.

In conclusion, the Tribunal ruled in favor of the appellants, granting them the SSI Benefit based on the exclusive use of the foreign brand name 'BILZ' assigned under the Agreement and dismissing the demands as time-barred.